Daily Pivots: (S1) 0.9027; (P) 0.9051; (R1) 0.9095; More
EUR/GBP’s rally resumed by breaking 0.9087 and intraday bias is turned back to the upside. Current rise from 0.8312 should be targeting 0.9304 key resistance. At this point, there is no clear sign of up trend resumption yet. Hence, we’ll be cautious on strong resistance from 0.9304 to limit upside and bring another fall. On the downside, below 0.9050 minor support will turn intraday bias neutral first. But further rise will remain in favor as long as 0.8948 resistance turned support holds.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. It’s uncertain whether it is finished yet. But in case of another fall, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside and bring rebound. Whole up trend from 0.6935 is expected to resume after consolidation from 0.9304 completes.
